Identify three (3) risks of the bid strategy Essay Example for Free

Identify three (3) risks of the bid strategy Essay After identifying the customer key evaluation requirements I have identified three risks that may affect our bidding strategy. First, I want to identify why it’s important to know your risks when creating a bid strategy to help you understand why I choose these top three risks. Risk management is the process of identifying risk issues and the options for controlling them, commissioning a risk assessment, reviewing the results and selecting amongst the assessed options to best meet the goals. The purpose of risk analysis is to help managers better understand the risks (and opportunities) they face and to evaluate the options available for their control. (Vose software, 2007) The top risk of the bid strategy for this company would be price. Price was selected as the top risk because although the company would like to win the bid, the price has to be within a range where they could also make money. The second risk selected is Logistics. This risk was selected since the product has to travel overseas. Depending on the time frame and the cost to have the product shipped the product may not make it to the destination in time. It is very important to have the product delivered in a timely manner to satisfy the end user requirements. Thirdly, the last risk selected is Customer Commitment. Our company must follow all the requirements in order to make the end user happy. Since the product is going overseas it will be hard to follow up on maintenance. Without having our own personnel at the end user location or close to the location it will also be a challenge if there are any issues with the product. Based on the three risks of the bid strategies that were selected there are also three opportunities to mitigate each risk. First we have the price, now when negotiating on the rate we will really need to do our research. It’s important to have knowledge of previous pricing and to also include overhead, packaging and transportation. Although, we have to take all these things into consideration we also have to remember we are not the only company bidding on this offer so we must rate acceptable amount. Next, we have logistics. Our company would have to negotiate with a freight forwarder for a reasonable rate to have the freight transported to the final destination. In order to negotiate a reasonable rate we would mention that if the rate offered is good this would be an opportunity for extreme growth. While we are negotiating we would have to make sure the transit times would be guaranteed in order to have freight delivered to the destination on time. Finally, we have customer commitment. This may be the most important opportunity of them all. If our company is able to provide a reliable solution to the end user needs we will gain past performance while making our customer happy. We will provide this service by checking with the customer on a monthly basis and sending an employee over to the end user location every two to three months to check that our products are working correctly. The flip side of risk is opportunity. Every bid carriers with it some opportunities beyond those represented by winning the contract. Potential opportunities include future additions or changes to contract value via market share, maintaining dominance in a particular area, protecting an area or contract from assault by competitors, or using the contract as a gateway to future procurements. Osborne, 2011) In conclusion, by looking into these risks and opportunities we will be able to determine whether we want to bid or no bid. If we cannot provide the end user with the requirements they need in a timely manner at a great cost it will not be beneficial for us to move forward with the bid procedures. As a company we must protect our brand and our products. So, we need to look closely at this conclusion to make our final bid or no bid decision.

Theme of Civilization and Savagery in The Novel The Lord of The Flies

Theme of Civilization and Savagery in The Novel The Lord of The Flies Theme of Civilization and Savagery in The Novel The Lord of The Flies The novel written by William Golding is an allegorical novel where lots of elements of fiction are used to communicate the main ideas and themes of the novel. One of the themes that can be explored trough this novel is civilization and savagery. The central concern of Lord of The Flies deals with the collapse of civilization to the rebirth of civilization. The conflict appear from this theme is communicate through the disintegration of the British young boys well look behaviour as they adapt themselves to a uncivilized, brutal life in the jungle after they were stranded on an island. The theory of inborn evil human evil hold an essential aspect in this theme as the young boys evolve more primitive, the beast that they scared of developed within themselves. The inborn evil is the beast that destructs the civilization as savageness call for its status. In the novel, The lord of the flies symbolizes the existence of the beast within the young boys mind. The rift of the theme of civiliza tion and savagery is also communicated through the symbols exist in this novel, the conch which related with the character Ralph and the lord of the flies which related with the character Jack. The fundamental concernment of this novel is the theme of civilization and savagery where civilization giving away to savagery within human heart, as the young boys shed their civilization for savagery after being influence by fear, superstition and their desires. Through the whole of this novel, the theme civilization and savagery communicates by the conflict between Ralph and Jack, who respectively represent civilization and savagery. The vary theory are deliberate by each two boys different attitude toward authorization on the island. Ralph who was selected to become a chief used his authority to set up rules on that island in order to have a better life between them. From the novel, Ralph said Thats what this shell called. Ill give the conch to the next person to speak. He can hold it when hes speaking (Golding, 43). This shows that the only person who can speak is the one who hold the shell which called conch during the meeting. Ralph has set up the rules so that no one will interrupt when someone is speaking to ensure the smoothness of the meeting which shows us that they are still civilized boys that have moral and ethical codes of the English society. On the other hand, Jack is more interest in gaining power over the others to satisfy his most primal impulses which is his desires of hunting pigs. All the same you need an army-for hunting. Hunting pigs, said Jack on the novel (Golding, 43). Jack desires for power shows that savagery has started taking over his mind. When Jack begin acting savage, the savage side become evident with the power of the leader, Ralph, collapse. Jack overthrows Ralph as a leader. He manage to persuade the others boys to join his tribe, a tribe which involve with hunting pigs, making sacrifices to the beast and having fun without realizing that they were stranded on an deserted island. This is proved by the line Now listen. We might go later to the castle rock. But now Im going to get more of the biguns away from the conch and all that. Well kill the pig and give a feast. He paused and went on more slowly. And about the beast. When we kill well leave some of the kill for it. Then it wont bother us, maybe (Golding, 165). He and his tribe go so far until it results in the destruction of th e peaceful environment on the island as well as the collapsing of their civilized mind. The cleft of the theme is also demonstrate through the novels major symbol which are the conch that affiliate with character Ralph and The Lord of the Flies that affiliate with the character Jack. The conch that was found by Ralph is a powerful symbol which shows the democratic order on that island, agreeing Ralphs leadership that was determine through the election and also the power of assembly among the young boys. From the novel, Piggy said, We can use this to call the others. Have a meeting. Theyll come when they hear us (Golding, 22). This shows that the conch has the power to call the others for a meeting which represent the symbol of authority and order that related to the civilization among the boys. However, as the engagement between Ralph and Jack getting worse, the conch loses symbolic importance. You havent got it with you, said Jack, sneering. You left it behind. See, clever? And the conch doesnt count at the end of this island (Golding, 186). From what Jack has said, th is shows that the conch started to loses its power of authority and order and represent the decline of civilization on the island. In the meanwhile, The Lord of the Flies, which is a sacrifice to the suppositious beast on the island, contributes to the dominance of the savagery on the island and also symbolise Jacks authority over his tribe. From the novel, Jack spoke loudly, This head is for the beast. Its a gift (Golding, 170). In addition, the demolition of the conch at the scene where Piggy was killed manifests the complete destruction of civilization on the island. In the novel, the devastation of the conch is shows from the phase, The rock struck Piggy a glancing blow from chin to knee, the conch exploded into a thousand white fragments and ceased to exist(Golding, 222). At the end of this novel, the savagery has totally displaced civilization as the prevailing system on the island. The clash between the theme of civilization and savagery in this novel also can be explored through the symbol of fire which associate with civilization and the symbol of mask which associate with savagery. The symbol of fire in this novel is very important as it bring lots of meaning to the boys. It represents the hope of being rescue, survival and also civilization. In the novel, Ralph said Theres another thing. We can help them to find us. If a ship comes near the island they may not notice us. So we must make smoke on top of the mountain. We must make a fire(Golding, 49). This indicates that the boys know that the fire is very important because without the smoke from the fire, they would never be rescued. The symbol of fire shows the only civilization left on the island as it is a form of hope, survival and most importantly, rescue as Ralph said in the novel Your only hope is keeping a signal fire going as long as theres light to see. Then maybe a ship will notice the smoke and c ome and rescue us and take us home. But without that smoke weve got to wait till some ship comes by accident. We might wait years; till we were old (Golding, 219). On the other hand, the symbol of mask in this novel stands for savagery and barbaric behaviour. The mask has encouraged the incivility in the boys and provides them with a different identity. From the novel, Jack said For hunting. Like in the war. You know -dazzle paint. Like thing trying to look like something else (Golding, 79).The mask has made the boys started to transform from civil to savage. When the boys hide behind the mask, the boys somehow are given a new identity which gives confidence and a sense of carefree. Behind the masquerade, they commit acts of barbarity. It liberates them from shame and leads them into a savage like creatures. It also detaches them from reality and triggers them to neglect their responsibility. As the novel progress, Golding shows how different people feel the influences of the instincts of civilization and savagery to different degrees. Generally, however, Golding implies that the instinct of savagery is far more primal and fundamental to the human mind than the instinct of civilization. The Lord of the Flies is a chronicles of civilization giving way to savagery within human nature, as the young boys who were stranded on the island shaped by the supremely civilized British society become fully savage guided only by fear, superstition and desire.

FDI Policies of India and China

FDI Policies of India and China Chapter 1: Introduction 1.1. Overview Foreign Direct Investment is a hot topic in most policy circles as it is associated in many instances with significant macroeconomic changes and improvements in the range of goods and services produced in recipient countries. Furthermore growth in recipient countries is often ascribed to these inflows and so competition for higher inflows of FDI has become competitive. Most of the developing and developed countries increase their economy by enhancing their share in the global market through FDI inflows. As FDI shows more impact on the countrys economy, most of the foreigners are investing their amount in other countries for improving their profits with less manpower and minimum initial cost. These inflows were easily achieved by the investors by just fulfilling their basic requirements and maintaining their policies. FDI can be used by the countries only when they meet some of the major requirements like transfer of capital, a source of funds for foreign operations, Control investmen t and a balance of payments flow (Nicolas, B., 2010). Even though the FDI inflows in developing countries are low that is nearly 5%, this shows more impact on the economy in terms of the development programs by introducing new technologies. This change will be occurred only in the surroundings of investment areas. Here, in this research the FDI inflows between India and China are studied by comparing both the countries. Further of this study clearly explains the various aspects that are considered by the India and China for increasing the FDI inflows in the global market and also illustrates the policies that are followed by China as most of the investors prefer China when compare to the India. Finally, it recommends some of the policies and the changes that need to be made by the Indian Government for improving its FDI inflows. 1.2. Aim and Objectives Aim: To study the variations between the FDI policies of Indian and China based on their inflows and overall performance of the economy. Objectives: To study the importance of FDI and the required fundamental policies for acquiring the FDI. To research on the impact of FDI inflows in India and China based on their overall performance. Identifying the possible steps for Indian policy makers for improving their FDI inflows. Statistically evaluating the comparison between India and China in terms of FDI inflows. 1.3. Purpose of Study This study mainly focuses on the Foreign Direct Investment, the role of FDI in India and China and also illustrates the comparison between these two countries in terms of FDI. This research is selected in order to know more about the investments made by the developing countries and the involvement in international financial banking markets to influence the global and political aspects. This study is mostly useful for the people who are willing to know about the role played by FDI in the fast growing countries like India and China where these two countries differs in their environmental conditions. While researching about the FDI in both countries, one can easily analyze that China is showing more interest in attracting the FDI and is leading their economy when compare to India. So in order to clearly investigate on this point, this study also focuses on the aspects and the policies that need to be designed by the Indian country for attracting the investors and also to increase the ov erall performance of the economy by raising the inflows when compared to China. 1.4. Research Context In this study the researcher is focused on the worlds largest two most populated countries: India and China with a greatest history background. These two countries are known to be fast growing countries in the world and are known for their ample facilities and environmental conditions. These two countries are economically improving their standards in terms of technology and infrastructural growth. However, China is considered to be more positive in terms of attracting FDIs and are almost leading the comparison with India. In this research the time is a biggest constrain and to understand the research physically is really a tough target for the researcher by visiting both countries to meet and interview/ survey the financial organizations experts from various locations. However it is also noticed that in India only the FDI policies are changing from place to place based on the local governments rules and regulations. All the major rules and regulations governed by RBI and Government o f India are applicable, addition to that the investing company also needs to ensure that the environmental and ethical issues are not disturbed by the foreign investors in local and urban areas of various parts of India. As an example, there are some pilgrim places of India which does not allow non vegetarian food or related items so in that circumstance neither Government of India or RBI cannot allow the foreigners to invest their amount for a restaurant or bar and etc. Similarly in China it is one of the largest countries in the world and is having different cultures and backgrounds with in the country. Hence from the above context it is understood that this research will mainly focus on the secondary data available and in some areas it can get into the help of people related to the financial and banking industry. 1.5. Research Methodology For conducting any type of research, the data needs to be gathered by the researcher where this collected information should be in such a way that it is valid and accurate. Researcher need to choose a suitable method from various research methods, by which the researcher can successfully finish the research. Generally there exist two different types, primary data and secondary data. Primary data mainly focus on the aim of the research where the researcher can easily collects the information from various methods like surveys, interviews, etc. Where as in the secondary data, the researcher can collect the data only from the sources like journals, books, magazines, online articles, etc. where the researcher need to collect the accurate data as these recourses will not focus on the aim of research (Kumar, R., 2005). Here in this research, researcher collects the information through secondary data as the main aim of this research is to compare the FDI inflows in both India and China. As t he time is the biggest constrain, it will be really tough target for the researcher to select the primary data as the researcher either need to do interview /survey with the concern persons by visiting two countries where it cannot be possible with the period of time. So, its better to prefer secondary data for gathering accurate information for the research by referring various resources. Hence, the research can be successfully completed by analyzing the collected information and drawing the conclusion from this data. Chapter 2: Literature review 2.1. Overview This chapter will provide the suitable information and required material for completing research successfully with no issues during the research process. At the same time the literature review gives a basic idea about the research problem solving background with additional material from their related background history. The growth of multinational enterprise (MNE) activity in foreign direct investment (FDI) has grown at a faster rate than most other international transactions as well as the trade flows between countries. The research literature review covers the objects related to foreign direct investment, detailed introduction and description of FDI and impacts of FDI. International Monetary Fund (IMF) has defined the FDI as an international investment of one company with the target of enduring relationship i.e. Investments made by company must exceed the equity of Target Company by 10%. The major requirements of the investors will help in faster growth of their organization which is explained by Nicolas, B. (2010) in terms of Control investments, supply of funds for foreign operations, a balance of payments flow and Capital transfers. 2.2. Brief History and background of Foreign Direct Investment In the present world, there exist various investment techniques for the corporations for increasing their growth. If these industries lacks in making right decisions in their investment then it may lead to reduce their growth and their level in the global market. So, many of the countries prefer Foreign Direct Investment (FDI) compare to other techniques because most of the corporations get affected financially due to their investment decisions. Mostly FDI is preferred as it is considered as an integral part of an open and effective international economic system and also referred as the major catalyst to development (OECD, 2002). In the present market, USA stood a number one position in FDI flows. According to Nicolas Breitfeld (2010, p.1), Foreign Direct Investment (FDI) is defined by the IMF as an international investment of one company with the intention of lasting relationship. Foreign Direct Investment (FDI) plays an important role in the financial sector. Generally most of the countries believe that increasing the international linkages through FDI is an important feature of financial globalization and elevates the major challenges for statistics and policymakers in industrial and developing countries (Neil, K. P., 2004). Further of this section, it clearly discusses the views of authors on FDI, the importance of FDI and mainly focuses on the issues that are being faced by the countries while introducing the FDI. Even-though authors define Foreign Direct Investment (FDI) in different ways based on their research it is mainly mend to development on countrys and globalization. Some of the authors views on FDI are discussed below: According to Organization for Economic Co-Operation and development (OECD) (2008, p.62), Foreign Direct Investment (FDI) occurs when a business located in one country (the direct investor) invests in a business located in another country (the direct investment enterprise) with the objective of creating a strategic and a lasting relationship. Here, the author suggests that occurrence of FDI exists only when the business persons invests their money in another country. They invest their income in another country by making some rules and regulations in their relationship. But according to Alexander, L. and IMFD, (2002), foreign direct investment defined as the integration of three components which are illustrated below: The branch profits need to be distributed and divided in equity without any holding withholding taxes. Accrued interest need to be paid to the direct investor by the direct investment enterprise, this can also be referred as income on debt. Earnings are reinvested in proportion with the direct investment stake. In this context, author says that the investment and the interest benefited by the business people need to be redistributed in an equal proportion among the investor and the direct investment enterprise. At the same time, Neil, K. P. (2004, p.3), discusses that according to BPM5 (Balance of Payments Manual) FDI defined as a category of international investment that reflects the objective of a resident in one economy (the direct investor) obtaining a lasting interest in an enterprise resident in another economy (the direct investment enterprise). ÂÂ  Here, the author discuss that FDI indirectly affects the economy of another country as the other country invest their income on another country for gaining interest on their investment. Even though the opinions and views of the authors differs in defining the FDI but all the authors focus on only one point that is the benefit dragged by the investor and the direct investment enterprise. These investors of get benefited globally with FDI on the interest on their investment and also increases their international linkages with the industries established in another country. ÂÂ   2.3. Impacts of FDI Foreign Direct Investment is considered as a driver of economic growth and development for developing countries which often lack the technology or capital to promote sustained economic growth and development. Mostly, FDI is considered as one of the major drivers of globalization as it continuously raises with the high growth rates before the financial crisis hit the world economy. The way through which FDI promotes economic growth and development to the countries is contentious because there is no definitive evidence and lags in supporting the literature. Even though there is no empirical evidence in representing the impact of FDI on the countries there are some theoretical explanations from which one can easily analyse the impacts of FDI on developed and developing countries. According to Bora, B. (2002, p.168), FDI flows were increasing rapidly much more quickly than international trade flows, which in turn were increasing faster than world GDP. Laura Alfaro (2003) says that FDI of fers great advantages to host countries because many of the academics and policy makers argue that there exists a most important positive effect on the development of host countries. FDI not only acts as the source of the valuable technology but also helps the countries in developing the linkages with the local firms that indirectly helps the country in raising the economy. Due to these reasons, most of the developing and industrialized countries offer incentive for encouraging the FDI in their economies. The environmental impacts of foreign direct investment may be positive, negative or neutral based on the institutional and industrial context. Gorg and Greenwood (2002) comes under a conclusion that the effect due to FDI is negative by reviewing the information from the foreign-owned to domestically owned firms. But Lipsey (2002) supports the positive benefits in preferring FDI. FDI flows attained a new record level right from the year 1990 to 2000. Then, from the year 2001 the gro wth in the investment failed and the later years it saw a steady and steep decline in global FDI flows. , Figure: Shows trends in global FDI flows during the year 1991 to 2003 (FDI, 2007, p.7). FDI affects the economic growth of the country in various aspects like it raises the formation of human capital, provides a facility to transfer the technology between the host countries and also stimulates the domestic investment. The relationship between the impact of FDI and economic growth can be easily analyzed with the help of production function and also with the other variables that affect economic growth such as domestic, trade, labour and capital (Falki, N. 2009). Production function was done based on the endogenous growth. According to Kumar, N. (1998, p.112), Direct investment was thought of mainly as a flow of capital, possibly replacing local capital or possibly representing marginal additions to the host countrys capital stock, followed by the necessity of financing dividends and interest, and possibly repatriation of capital. Some of the authors studied on the impact of FDI on economic growth in developing countries where those opinions are illustrated below: Authors views on Does FDI promote Economic Growth in developing countries S.No. Authors name Researched during the year Does FDI promote Economic Growth in developing countries (Yes/No/May be) Explanation 1. Balasubramanyam 1996, 1999 May be Requires open or neutral trade regime 2. Borensztein 1998 May be Depends on education level of workforce 3. De Mello 1999 May be Depends on degree of complementarily and substitution between FDI and domestic investment 4. Graham and Wada 2001 Yes Raised per capita GDP in Chinese provinces with FDI concentration 5. Graham 1995 May be TNCs market power can generate negative impacts 6. Loungani and Razin 2001 May be Risks 7. Lim 2001 May be Depends on tax incentives, regulatory and legal impediments, macroeconomic instability 8. Marino 2000 May be Requires open trade and investment policies 9. Mallampallyand Sauvant 1999 May be Requires human resource development, information and other infrastructure 10. Markusen and Venables 1999 Yes Raises productivity and exports of domestic firms, generates spillovers 11. Rodrik 1999 No Reverse causality: TNCs locate, rather than drive growth, in more productive and faster growing countries Table: Shows the authors explanation on Does FDI Promote Economic Growth in developing Countriesthis is a question? (LyubaZarsky, 2005, p.25) From the above table, it can be understood that out of 11 authors, only 2 authors support that FDI promotes economic growth in the developing countries as they explain that it raises the productivity, exports of domestic firms and stated a practical example that it raised the percapita GDP of china government with the help of FDI. Rodrik, opposed the views of the other authors on supporting the FDI as based on their research. From Rodrik research, it has been stated that it doesnt shown impact rather it was derived as a reverse causality. Apart from these three authors, the remaining 8 authors were in a dynamo whether to support the FDI or not because all these authors states that the impact on FDI on economic growth depends only on the circumstances that the author considers but not on any other aspects. For example: FDI shows more impact on economic growth only when the government fulfil some basic needs such as require open trade, investment policies, human resource development, i nformation, other infrastructure, etc. If these requirements are fulfilled by the government then automatically it get benefited with the FDI but if it fails in reaching those needs then it may face some risks due to the policies and the agreement between the countries. Hence, it can be stated that impacts of FDI directly depends on the situations and circumstances that are being considered by the government. By tightening of international financial conditions will have as awful effect on inflows of FDI. In the recent years, this has been main source of assets for many countries (U. N. Staff. 2009).FDI shows more effect on the economic growth of the countries as it provides various benefits to the countries that acquire FDI are illustrated below (Khan Arshad, 2007): Introduces the latest techniques and technologies of marketing and management with the help of FDI, the developing countries can know more about the latest techniques and the technologies that are being used by the developed countries. By acquiring and implementing these latest technologies in the developing countries, to some extent it can increase its growth in terms of economy. Exploitation and utilization of local raw materials usage of raw materials in the countries will be increased by exporting these excess materials to other countries and get benefited with them by importing other raw materials from other country which are shortage in their countries. Can be easily access to the new technologies as there will be a rapid flow between the countries, each of the country can know more easily about the other country and their religion. Based on this analysis, it can assess and access the technologies in their own region by making contract with the other countries. Financial flows between the countries Foreign inflows between the countries are used for financing current account deficits. The finance flows between the countries are transferred in the form of FDI where it doesnt generate interests and repayment of principal but internally raises the human capital stock through job training. Chapter 3: Empirical Literature on FDI based on INDIA and CHINA 3.1. Effects of FDI on all other countries when compared with India and china The existence of a strong negative relationship between trade share and country size was supported by the literature on trade and development. Country size and trade ratio are inversely proportional in size (larger the size of the country smaller is the trade ratio), the foreign trade, investment, and technology transfer between countries will directly affect the degree of sincerity and competitive pressures emanating from abroad (Pieter, B. 2007). Thus, the impact of these competitive pressures would be much less in a large country such as China and India than that among other East Asian NICs. In recent years china had recognized its need towards foreign trade, investment and technology with the aim of modernization, nothing like the Third World developing countries (India) that impoverished foreign capital. 1984-85 1994-95 1999-2000 2004-05 2006 2007 World 2.2 4.8 18.3 9.0 12.9 14.8 Developed economies 2.1 3.9 19.1 7.7 12.80 15.6 Developing economies 2.8 8.1 15.8 11.9 12.5 12.6 Developing Asia 2.3 7.9 12.1 9.9 11.0 10.6 East Asia 1.9 9.0 14.8 9.3 8.7 8.6 China 1.8 15.9 10.4 7.7 6.4 5.9 South Asia 0.2 1.7 2.4 3.3 6.2 5.7 India 0.1 1.7 2.7 3.1 6.6 5.8 Table 2: shows FDI inflow as percentage of gross domestic fixed capital formation (GDFCF), 1944 -2007. (Source: Prema, C. A. 2009, p.379) The average annual level of FDI inflow for developing Asia had raced sharply from US$ 19 billion during 1984 1985 to US$ 500 billion till 2007, at the same time share to developing countries have raised from 15.1 to 17.4 percent which is shown in the above table. The gross domestic fixed capital (GDFCF) as a share of FDI inflow is higher for all the developing countries in the period 1984 1996 and reversal due to the Asian financial crisis during 1997 98. FDI inflow for developing Asia with the average FDI/GDFCF ratio during entire period 1984 2007 is approximately 9 percent and 7.1 per cent when compared with all the developing countries at the same time the global average is 7.4 per cent. China is the recipient country of inward flow and the largest developing country from past two decades where it has been investigated a theoretical increase in inflow with in developing Asia. Among all the countries china was in the second position for total FDI flow as per the ASEAN countries , with increased average annual level of US$ 3 billion during 2000-2007, and from the year 1980 to 1997 almost before six years china was in the second half with US$ 30 billion which was the onset effect of financial crises from 1997-98, due to decline and with determination from about US$ 35 billion per annum before the year 1997 to an annual average of about US$ 24 billion between 1997-79. Establishment of export-oriented industries is heavily concentrated by chinas FDI, there observation on the share of FIEs for total exports in transition economies of china is two percent of expended persistently before 1980 and approximately 60 percent by the year 2006. India process to increases FDI participation in export- oriented activities which had remained at a outlier region of FDI whose one/third FDI during the independence in 1947 was a major amount of stock as a primary sector with plantation, mining and oil at the same time one/forth was the manufacturing and all the remaining stock s are in services, mostly trade, construction, transportation and utilities. The inflow started increasing in manufacturing from 1960s although with a divestment from this sector of FDI, since, low-wages, low skilled manpower are the Indias huge supply it can attract garments and other simple assembly activities which would indirectly favor the heavy foreign investment industry thus primarily focusing towards domestic market. From mid 1990s a slight increase in software is observed as well as significant competition with the world market at industrial production was not notable (Park, J. H. 2002).some of the difficulties which are to be faced and over come for fast development of the country . India faced many difficulties to attract foreign investors in both products and services market now it is only success to service industry of IT mainly. In order to overcome these difficulties to stimulate domestic demand this is given in three steps: The interest rates should be competitive in RBI. Value added tax (VAT) are to be implemented. Reduce the budget deficit through government. Figure: shows the financial states of India and china GDP the total chinas financial assets is approximately 220 per cent of GDP at the same time Indias financial assets is 160 per cent, countries savings and investment is the great strength for chinas financial system and Indias financial system is outside occur in savings and investments (Sources: Slide share 2008, slide No:18). 3.2. Fundamental policies of FDI India followed market-distorting policies on both foreign and private investments thus with this estimation about barriers for imports and exports are analyzed. Thus it become necessary to control the production and distribution as well as administered price controls etc. The impacts of opening up policies are likely to open up with foreign trade, investment and technology transfer, which would be much less in large countries of china and India when compared with all other East Asian NICs. Chinas opening policies in recent years is the success story with the favorable impact is not only for small economies but also for all large continental economies. China and India may not suffer from a large country constriction for adopting the export-oriented, outward-looking development strategy considerably (Park, J. H. 2002). The reformist policy is to fill the domestic savings gap which is necessary for economic development with foreign capital inflows, along with other goals in advanced for eign technology and managerial skills, and to promote exports to increase the foreign exchange earnings of the country. Due to open-door policy Chinas trade and inflow of foreign direct investment and loans are impressive, thus within a very short time china became a major exporting country, and an export competitor with the East Asian NICs (Newly Industrializing Countries) and ASEAN (Association of Southeast Asian Nations) countries in the Asia Pacific region. The opening policies in china have contributed to the countrys economic growth and development considering all domestic economic events. The Indias economic reforms undertaken in 1991 in light of Chinas experience with the export-oriented, foreign direct investment strategy for economic growth and development which has been examined with superiority of export-oriented, outward-looking development strategies. Thus China can provide important lessons and policy implications in economic development for all Third World developing countries like India. The success story of china open to worlds economy made it ideal for studying the relationship between trade and development as well as for testing the validity of export-promoting development strategy. 3.3. Historical Background and National Goals 3.3.1. History of FDI in India The generational explanation of history is given as follows after Indias independence: during 1947 to 48 there was the British owned the private foreign capital through the national policies resolution which is Swadeshi movement Industrial policy. In the next generation i.e. from 1949 to 1953 foreign investments where far away from trio of domestic business house with foreign capital as well as with the government nationalist sentiments. The second Economic plan was launched in 1957 as industrialization through import substitution and encouraging private investment. Some of the selected industries got foreign collaboration and JV mostly manufacturing companies which are retained participation in India FDI since 1960s, the devaluation of rupee encouraged the socialist idealism banks and foreign oil majors nationalized after late 1960s. After almost 8 years in 1968 the foreign investment board had encouraging investments on there own terms and conduction. In the year 1973as per the F oreign Exchange Act (FERA) which launched a new article that all firms should come together for their foreign equity, holding 40% of foreign equity to be considered as Indian companies due to which IBM as well as coca cola is exited. After seven years of strict vigilance on FDI, from the year 1980 licensing procedures were liberalized to softened, technology transfer and royalty payments relaxed, foreign investment was encouraged wherever possible. During 1900-s rupee value got down, withdrawal of NRI money, India turned to IMF; there was liberalization on trade regime and regulatory frame work. Many of the industries were invited by FDI and in some cases limit was increased from 51% to 100%. The service sector was again opened for FDI. The political instability after 1995 had started but a perception towards FDI had changed due to changes in government kept focus on FDI. 3.3.2. History of FDI in China China has joined the joint venture with other countries in the year1979, and by the year 1986 china became fully foreign owned enterprise. It was divided into four zones namely Shantou, Shenzhen, and Xiamen in the year 1980. After four years in 1984 it was found that chinas economic zone has fourteen cities and whole china combined by late 1900s. There was a rapid economic growth in reform period due to profusion of labour and its low costs, Rapid expansion of Chinas domestic market at the same time plays important role of overseas Chinese for increasing integration with world economy. The marketing effects are generally obtained by imports and exports in both bilateral countries. FDI is very essential for developing countries for Off setting the capital deficiency, Acquiring advanced technology, Gaining production know-how, Promoting exports as well as to Table 2: shows FDI in India-China products Trade (in million US Dollars). (Source: Prema, C. A. 2009, p.379) The two highest population countries of the world are India and China which together contain approximately 40 per cent of the worlds humidity on an adjacent landmass in Asia. Both countries are pride in birthplace of civilization entering the era of sharing worlds greatest development problem. The underdeveloped areas of these two countries is due to huge population relative to land and other resources, around 1950s there was no commitment to national planning for economic modernization as there was new governments of China and India, led by Mao Zedong and Jawaharlal Nehru so as to eliminate poverty and raise the standard of living (Park, J. H. 2002). Approaches to Development: Some of the important characteristics shared within India and China as the wealth of people relative to other rare resources such as arable land, natural resources, and capital suggesting the appropriate strategies for development would have involved production of labor-intensive goods. Among these some are exchanged for imports of capital goods and technology as per the necessity for development. For economic FDI Policies of India and China FDI Policies of India and China Chapter 1: Introduction 1.1. Overview Foreign Direct Investment is a hot topic in most policy circles as it is associated in many instances with significant macroeconomic changes and improvements in the range of goods and services produced in recipient countries. Furthermore growth in recipient countries is often ascribed to these inflows and so competition for higher inflows of FDI has become competitive. Most of the developing and developed countries increase their economy by enhancing their share in the global market through FDI inflows. As FDI shows more impact on the countrys economy, most of the foreigners are investing their amount in other countries for improving their profits with less manpower and minimum initial cost. These inflows were easily achieved by the investors by just fulfilling their basic requirements and maintaining their policies. FDI can be used by the countries only when they meet some of the major requirements like transfer of capital, a source of funds for foreign operations, Control investmen t and a balance of payments flow (Nicolas, B., 2010). Even though the FDI inflows in developing countries are low that is nearly 5%, this shows more impact on the economy in terms of the development programs by introducing new technologies. This change will be occurred only in the surroundings of investment areas. Here, in this research the FDI inflows between India and China are studied by comparing both the countries. Further of this study clearly explains the various aspects that are considered by the India and China for increasing the FDI inflows in the global market and also illustrates the policies that are followed by China as most of the investors prefer China when compare to the India. Finally, it recommends some of the policies and the changes that need to be made by the Indian Government for improving its FDI inflows. 1.2. Aim and Objectives Aim: To study the variations between the FDI policies of Indian and China based on their inflows and overall performance of the economy. Objectives: To study the importance of FDI and the required fundamental policies for acquiring the FDI. To research on the impact of FDI inflows in India and China based on their overall performance. Identifying the possible steps for Indian policy makers for improving their FDI inflows. Statistically evaluating the comparison between India and China in terms of FDI inflows. 1.3. Purpose of Study This study mainly focuses on the Foreign Direct Investment, the role of FDI in India and China and also illustrates the comparison between these two countries in terms of FDI. This research is selected in order to know more about the investments made by the developing countries and the involvement in international financial banking markets to influence the global and political aspects. This study is mostly useful for the people who are willing to know about the role played by FDI in the fast growing countries like India and China where these two countries differs in their environmental conditions. While researching about the FDI in both countries, one can easily analyze that China is showing more interest in attracting the FDI and is leading their economy when compare to India. So in order to clearly investigate on this point, this study also focuses on the aspects and the policies that need to be designed by the Indian country for attracting the investors and also to increase the ov erall performance of the economy by raising the inflows when compared to China. 1.4. Research Context In this study the researcher is focused on the worlds largest two most populated countries: India and China with a greatest history background. These two countries are known to be fast growing countries in the world and are known for their ample facilities and environmental conditions. These two countries are economically improving their standards in terms of technology and infrastructural growth. However, China is considered to be more positive in terms of attracting FDIs and are almost leading the comparison with India. In this research the time is a biggest constrain and to understand the research physically is really a tough target for the researcher by visiting both countries to meet and interview/ survey the financial organizations experts from various locations. However it is also noticed that in India only the FDI policies are changing from place to place based on the local governments rules and regulations. All the major rules and regulations governed by RBI and Government o f India are applicable, addition to that the investing company also needs to ensure that the environmental and ethical issues are not disturbed by the foreign investors in local and urban areas of various parts of India. As an example, there are some pilgrim places of India which does not allow non vegetarian food or related items so in that circumstance neither Government of India or RBI cannot allow the foreigners to invest their amount for a restaurant or bar and etc. Similarly in China it is one of the largest countries in the world and is having different cultures and backgrounds with in the country. Hence from the above context it is understood that this research will mainly focus on the secondary data available and in some areas it can get into the help of people related to the financial and banking industry. 1.5. Research Methodology For conducting any type of research, the data needs to be gathered by the researcher where this collected information should be in such a way that it is valid and accurate. Researcher need to choose a suitable method from various research methods, by which the researcher can successfully finish the research. Generally there exist two different types, primary data and secondary data. Primary data mainly focus on the aim of the research where the researcher can easily collects the information from various methods like surveys, interviews, etc. Where as in the secondary data, the researcher can collect the data only from the sources like journals, books, magazines, online articles, etc. where the researcher need to collect the accurate data as these recourses will not focus on the aim of research (Kumar, R., 2005). Here in this research, researcher collects the information through secondary data as the main aim of this research is to compare the FDI inflows in both India and China. As t he time is the biggest constrain, it will be really tough target for the researcher to select the primary data as the researcher either need to do interview /survey with the concern persons by visiting two countries where it cannot be possible with the period of time. So, its better to prefer secondary data for gathering accurate information for the research by referring various resources. Hence, the research can be successfully completed by analyzing the collected information and drawing the conclusion from this data. Chapter 2: Literature review 2.1. Overview This chapter will provide the suitable information and required material for completing research successfully with no issues during the research process. At the same time the literature review gives a basic idea about the research problem solving background with additional material from their related background history. The growth of multinational enterprise (MNE) activity in foreign direct investment (FDI) has grown at a faster rate than most other international transactions as well as the trade flows between countries. The research literature review covers the objects related to foreign direct investment, detailed introduction and description of FDI and impacts of FDI. International Monetary Fund (IMF) has defined the FDI as an international investment of one company with the target of enduring relationship i.e. Investments made by company must exceed the equity of Target Company by 10%. The major requirements of the investors will help in faster growth of their organization which is explained by Nicolas, B. (2010) in terms of Control investments, supply of funds for foreign operations, a balance of payments flow and Capital transfers. 2.2. Brief History and background of Foreign Direct Investment In the present world, there exist various investment techniques for the corporations for increasing their growth. If these industries lacks in making right decisions in their investment then it may lead to reduce their growth and their level in the global market. So, many of the countries prefer Foreign Direct Investment (FDI) compare to other techniques because most of the corporations get affected financially due to their investment decisions. Mostly FDI is preferred as it is considered as an integral part of an open and effective international economic system and also referred as the major catalyst to development (OECD, 2002). In the present market, USA stood a number one position in FDI flows. According to Nicolas Breitfeld (2010, p.1), Foreign Direct Investment (FDI) is defined by the IMF as an international investment of one company with the intention of lasting relationship. Foreign Direct Investment (FDI) plays an important role in the financial sector. Generally most of the countries believe that increasing the international linkages through FDI is an important feature of financial globalization and elevates the major challenges for statistics and policymakers in industrial and developing countries (Neil, K. P., 2004). Further of this section, it clearly discusses the views of authors on FDI, the importance of FDI and mainly focuses on the issues that are being faced by the countries while introducing the FDI. Even-though authors define Foreign Direct Investment (FDI) in different ways based on their research it is mainly mend to development on countrys and globalization. Some of the authors views on FDI are discussed below: According to Organization for Economic Co-Operation and development (OECD) (2008, p.62), Foreign Direct Investment (FDI) occurs when a business located in one country (the direct investor) invests in a business located in another country (the direct investment enterprise) with the objective of creating a strategic and a lasting relationship. Here, the author suggests that occurrence of FDI exists only when the business persons invests their money in another country. They invest their income in another country by making some rules and regulations in their relationship. But according to Alexander, L. and IMFD, (2002), foreign direct investment defined as the integration of three components which are illustrated below: The branch profits need to be distributed and divided in equity without any holding withholding taxes. Accrued interest need to be paid to the direct investor by the direct investment enterprise, this can also be referred as income on debt. Earnings are reinvested in proportion with the direct investment stake. In this context, author says that the investment and the interest benefited by the business people need to be redistributed in an equal proportion among the investor and the direct investment enterprise. At the same time, Neil, K. P. (2004, p.3), discusses that according to BPM5 (Balance of Payments Manual) FDI defined as a category of international investment that reflects the objective of a resident in one economy (the direct investor) obtaining a lasting interest in an enterprise resident in another economy (the direct investment enterprise). ÂÂ  Here, the author discuss that FDI indirectly affects the economy of another country as the other country invest their income on another country for gaining interest on their investment. Even though the opinions and views of the authors differs in defining the FDI but all the authors focus on only one point that is the benefit dragged by the investor and the direct investment enterprise. These investors of get benefited globally with FDI on the interest on their investment and also increases their international linkages with the industries established in another country. ÂÂ   2.3. Impacts of FDI Foreign Direct Investment is considered as a driver of economic growth and development for developing countries which often lack the technology or capital to promote sustained economic growth and development. Mostly, FDI is considered as one of the major drivers of globalization as it continuously raises with the high growth rates before the financial crisis hit the world economy. The way through which FDI promotes economic growth and development to the countries is contentious because there is no definitive evidence and lags in supporting the literature. Even though there is no empirical evidence in representing the impact of FDI on the countries there are some theoretical explanations from which one can easily analyse the impacts of FDI on developed and developing countries. According to Bora, B. (2002, p.168), FDI flows were increasing rapidly much more quickly than international trade flows, which in turn were increasing faster than world GDP. Laura Alfaro (2003) says that FDI of fers great advantages to host countries because many of the academics and policy makers argue that there exists a most important positive effect on the development of host countries. FDI not only acts as the source of the valuable technology but also helps the countries in developing the linkages with the local firms that indirectly helps the country in raising the economy. Due to these reasons, most of the developing and industrialized countries offer incentive for encouraging the FDI in their economies. The environmental impacts of foreign direct investment may be positive, negative or neutral based on the institutional and industrial context. Gorg and Greenwood (2002) comes under a conclusion that the effect due to FDI is negative by reviewing the information from the foreign-owned to domestically owned firms. But Lipsey (2002) supports the positive benefits in preferring FDI. FDI flows attained a new record level right from the year 1990 to 2000. Then, from the year 2001 the gro wth in the investment failed and the later years it saw a steady and steep decline in global FDI flows. , Figure: Shows trends in global FDI flows during the year 1991 to 2003 (FDI, 2007, p.7). FDI affects the economic growth of the country in various aspects like it raises the formation of human capital, provides a facility to transfer the technology between the host countries and also stimulates the domestic investment. The relationship between the impact of FDI and economic growth can be easily analyzed with the help of production function and also with the other variables that affect economic growth such as domestic, trade, labour and capital (Falki, N. 2009). Production function was done based on the endogenous growth. According to Kumar, N. (1998, p.112), Direct investment was thought of mainly as a flow of capital, possibly replacing local capital or possibly representing marginal additions to the host countrys capital stock, followed by the necessity of financing dividends and interest, and possibly repatriation of capital. Some of the authors studied on the impact of FDI on economic growth in developing countries where those opinions are illustrated below: Authors views on Does FDI promote Economic Growth in developing countries S.No. Authors name Researched during the year Does FDI promote Economic Growth in developing countries (Yes/No/May be) Explanation 1. Balasubramanyam 1996, 1999 May be Requires open or neutral trade regime 2. Borensztein 1998 May be Depends on education level of workforce 3. De Mello 1999 May be Depends on degree of complementarily and substitution between FDI and domestic investment 4. Graham and Wada 2001 Yes Raised per capita GDP in Chinese provinces with FDI concentration 5. Graham 1995 May be TNCs market power can generate negative impacts 6. Loungani and Razin 2001 May be Risks 7. Lim 2001 May be Depends on tax incentives, regulatory and legal impediments, macroeconomic instability 8. Marino 2000 May be Requires open trade and investment policies 9. Mallampallyand Sauvant 1999 May be Requires human resource development, information and other infrastructure 10. Markusen and Venables 1999 Yes Raises productivity and exports of domestic firms, generates spillovers 11. Rodrik 1999 No Reverse causality: TNCs locate, rather than drive growth, in more productive and faster growing countries Table: Shows the authors explanation on Does FDI Promote Economic Growth in developing Countriesthis is a question? (LyubaZarsky, 2005, p.25) From the above table, it can be understood that out of 11 authors, only 2 authors support that FDI promotes economic growth in the developing countries as they explain that it raises the productivity, exports of domestic firms and stated a practical example that it raised the percapita GDP of china government with the help of FDI. Rodrik, opposed the views of the other authors on supporting the FDI as based on their research. From Rodrik research, it has been stated that it doesnt shown impact rather it was derived as a reverse causality. Apart from these three authors, the remaining 8 authors were in a dynamo whether to support the FDI or not because all these authors states that the impact on FDI on economic growth depends only on the circumstances that the author considers but not on any other aspects. For example: FDI shows more impact on economic growth only when the government fulfil some basic needs such as require open trade, investment policies, human resource development, i nformation, other infrastructure, etc. If these requirements are fulfilled by the government then automatically it get benefited with the FDI but if it fails in reaching those needs then it may face some risks due to the policies and the agreement between the countries. Hence, it can be stated that impacts of FDI directly depends on the situations and circumstances that are being considered by the government. By tightening of international financial conditions will have as awful effect on inflows of FDI. In the recent years, this has been main source of assets for many countries (U. N. Staff. 2009).FDI shows more effect on the economic growth of the countries as it provides various benefits to the countries that acquire FDI are illustrated below (Khan Arshad, 2007): Introduces the latest techniques and technologies of marketing and management with the help of FDI, the developing countries can know more about the latest techniques and the technologies that are being used by the developed countries. By acquiring and implementing these latest technologies in the developing countries, to some extent it can increase its growth in terms of economy. Exploitation and utilization of local raw materials usage of raw materials in the countries will be increased by exporting these excess materials to other countries and get benefited with them by importing other raw materials from other country which are shortage in their countries. Can be easily access to the new technologies as there will be a rapid flow between the countries, each of the country can know more easily about the other country and their religion. Based on this analysis, it can assess and access the technologies in their own region by making contract with the other countries. Financial flows between the countries Foreign inflows between the countries are used for financing current account deficits. The finance flows between the countries are transferred in the form of FDI where it doesnt generate interests and repayment of principal but internally raises the human capital stock through job training. Chapter 3: Empirical Literature on FDI based on INDIA and CHINA 3.1. Effects of FDI on all other countries when compared with India and china The existence of a strong negative relationship between trade share and country size was supported by the literature on trade and development. Country size and trade ratio are inversely proportional in size (larger the size of the country smaller is the trade ratio), the foreign trade, investment, and technology transfer between countries will directly affect the degree of sincerity and competitive pressures emanating from abroad (Pieter, B. 2007). Thus, the impact of these competitive pressures would be much less in a large country such as China and India than that among other East Asian NICs. In recent years china had recognized its need towards foreign trade, investment and technology with the aim of modernization, nothing like the Third World developing countries (India) that impoverished foreign capital. 1984-85 1994-95 1999-2000 2004-05 2006 2007 World 2.2 4.8 18.3 9.0 12.9 14.8 Developed economies 2.1 3.9 19.1 7.7 12.80 15.6 Developing economies 2.8 8.1 15.8 11.9 12.5 12.6 Developing Asia 2.3 7.9 12.1 9.9 11.0 10.6 East Asia 1.9 9.0 14.8 9.3 8.7 8.6 China 1.8 15.9 10.4 7.7 6.4 5.9 South Asia 0.2 1.7 2.4 3.3 6.2 5.7 India 0.1 1.7 2.7 3.1 6.6 5.8 Table 2: shows FDI inflow as percentage of gross domestic fixed capital formation (GDFCF), 1944 -2007. (Source: Prema, C. A. 2009, p.379) The average annual level of FDI inflow for developing Asia had raced sharply from US$ 19 billion during 1984 1985 to US$ 500 billion till 2007, at the same time share to developing countries have raised from 15.1 to 17.4 percent which is shown in the above table. The gross domestic fixed capital (GDFCF) as a share of FDI inflow is higher for all the developing countries in the period 1984 1996 and reversal due to the Asian financial crisis during 1997 98. FDI inflow for developing Asia with the average FDI/GDFCF ratio during entire period 1984 2007 is approximately 9 percent and 7.1 per cent when compared with all the developing countries at the same time the global average is 7.4 per cent. China is the recipient country of inward flow and the largest developing country from past two decades where it has been investigated a theoretical increase in inflow with in developing Asia. Among all the countries china was in the second position for total FDI flow as per the ASEAN countries , with increased average annual level of US$ 3 billion during 2000-2007, and from the year 1980 to 1997 almost before six years china was in the second half with US$ 30 billion which was the onset effect of financial crises from 1997-98, due to decline and with determination from about US$ 35 billion per annum before the year 1997 to an annual average of about US$ 24 billion between 1997-79. Establishment of export-oriented industries is heavily concentrated by chinas FDI, there observation on the share of FIEs for total exports in transition economies of china is two percent of expended persistently before 1980 and approximately 60 percent by the year 2006. India process to increases FDI participation in export- oriented activities which had remained at a outlier region of FDI whose one/third FDI during the independence in 1947 was a major amount of stock as a primary sector with plantation, mining and oil at the same time one/forth was the manufacturing and all the remaining stock s are in services, mostly trade, construction, transportation and utilities. The inflow started increasing in manufacturing from 1960s although with a divestment from this sector of FDI, since, low-wages, low skilled manpower are the Indias huge supply it can attract garments and other simple assembly activities which would indirectly favor the heavy foreign investment industry thus primarily focusing towards domestic market. From mid 1990s a slight increase in software is observed as well as significant competition with the world market at industrial production was not notable (Park, J. H. 2002).some of the difficulties which are to be faced and over come for fast development of the country . India faced many difficulties to attract foreign investors in both products and services market now it is only success to service industry of IT mainly. In order to overcome these difficulties to stimulate domestic demand this is given in three steps: The interest rates should be competitive in RBI. Value added tax (VAT) are to be implemented. Reduce the budget deficit through government. Figure: shows the financial states of India and china GDP the total chinas financial assets is approximately 220 per cent of GDP at the same time Indias financial assets is 160 per cent, countries savings and investment is the great strength for chinas financial system and Indias financial system is outside occur in savings and investments (Sources: Slide share 2008, slide No:18). 3.2. Fundamental policies of FDI India followed market-distorting policies on both foreign and private investments thus with this estimation about barriers for imports and exports are analyzed. Thus it become necessary to control the production and distribution as well as administered price controls etc. The impacts of opening up policies are likely to open up with foreign trade, investment and technology transfer, which would be much less in large countries of china and India when compared with all other East Asian NICs. Chinas opening policies in recent years is the success story with the favorable impact is not only for small economies but also for all large continental economies. China and India may not suffer from a large country constriction for adopting the export-oriented, outward-looking development strategy considerably (Park, J. H. 2002). The reformist policy is to fill the domestic savings gap which is necessary for economic development with foreign capital inflows, along with other goals in advanced for eign technology and managerial skills, and to promote exports to increase the foreign exchange earnings of the country. Due to open-door policy Chinas trade and inflow of foreign direct investment and loans are impressive, thus within a very short time china became a major exporting country, and an export competitor with the East Asian NICs (Newly Industrializing Countries) and ASEAN (Association of Southeast Asian Nations) countries in the Asia Pacific region. The opening policies in china have contributed to the countrys economic growth and development considering all domestic economic events. The Indias economic reforms undertaken in 1991 in light of Chinas experience with the export-oriented, foreign direct investment strategy for economic growth and development which has been examined with superiority of export-oriented, outward-looking development strategies. Thus China can provide important lessons and policy implications in economic development for all Third World developing countries like India. The success story of china open to worlds economy made it ideal for studying the relationship between trade and development as well as for testing the validity of export-promoting development strategy. 3.3. Historical Background and National Goals 3.3.1. History of FDI in India The generational explanation of history is given as follows after Indias independence: during 1947 to 48 there was the British owned the private foreign capital through the national policies resolution which is Swadeshi movement Industrial policy. In the next generation i.e. from 1949 to 1953 foreign investments where far away from trio of domestic business house with foreign capital as well as with the government nationalist sentiments. The second Economic plan was launched in 1957 as industrialization through import substitution and encouraging private investment. Some of the selected industries got foreign collaboration and JV mostly manufacturing companies which are retained participation in India FDI since 1960s, the devaluation of rupee encouraged the socialist idealism banks and foreign oil majors nationalized after late 1960s. After almost 8 years in 1968 the foreign investment board had encouraging investments on there own terms and conduction. In the year 1973as per the F oreign Exchange Act (FERA) which launched a new article that all firms should come together for their foreign equity, holding 40% of foreign equity to be considered as Indian companies due to which IBM as well as coca cola is exited. After seven years of strict vigilance on FDI, from the year 1980 licensing procedures were liberalized to softened, technology transfer and royalty payments relaxed, foreign investment was encouraged wherever possible. During 1900-s rupee value got down, withdrawal of NRI money, India turned to IMF; there was liberalization on trade regime and regulatory frame work. Many of the industries were invited by FDI and in some cases limit was increased from 51% to 100%. The service sector was again opened for FDI. The political instability after 1995 had started but a perception towards FDI had changed due to changes in government kept focus on FDI. 3.3.2. History of FDI in China China has joined the joint venture with other countries in the year1979, and by the year 1986 china became fully foreign owned enterprise. It was divided into four zones namely Shantou, Shenzhen, and Xiamen in the year 1980. After four years in 1984 it was found that chinas economic zone has fourteen cities and whole china combined by late 1900s. There was a rapid economic growth in reform period due to profusion of labour and its low costs, Rapid expansion of Chinas domestic market at the same time plays important role of overseas Chinese for increasing integration with world economy. The marketing effects are generally obtained by imports and exports in both bilateral countries. FDI is very essential for developing countries for Off setting the capital deficiency, Acquiring advanced technology, Gaining production know-how, Promoting exports as well as to Table 2: shows FDI in India-China products Trade (in million US Dollars). (Source: Prema, C. A. 2009, p.379) The two highest population countries of the world are India and China which together contain approximately 40 per cent of the worlds humidity on an adjacent landmass in Asia. Both countries are pride in birthplace of civilization entering the era of sharing worlds greatest development problem. The underdeveloped areas of these two countries is due to huge population relative to land and other resources, around 1950s there was no commitment to national planning for economic modernization as there was new governments of China and India, led by Mao Zedong and Jawaharlal Nehru so as to eliminate poverty and raise the standard of living (Park, J. H. 2002). Approaches to Development: Some of the important characteristics shared within India and China as the wealth of people relative to other rare resources such as arable land, natural resources, and capital suggesting the appropriate strategies for development would have involved production of labor-intensive goods. Among these some are exchanged for imports of capital goods and technology as per the necessity for development. For economic

The lost battle :: essays research papers

The Alamo   Ã‚  Ã‚  Ã‚  Ã‚  General Sam Houston is in charge of the Alamo but he needs time to get a army ready to fight Santa Anna. Houston trusts Jim Bowie and Travis but now Bowie is drunk so he leaves Travis in charge of the Alamo. Then Houston leaves with his army to get it ready to fight. Bowie wakes up from being drunk and they raise the flag. Bowie doesn’t think they can beat Santa Anna and his 7,000 troops. Travis gets word that Santa Anna and his men just crossed a river that is way closer than he had thought. Travis does not tell his troops because they have no hope. Davy Crockett arrives at the Alamo with his men and they dance and drink. Travis does not drink and he wants to give a speech to all of the men about how Texas has no rights. Crockett makes Emil pay a little boy a tip for caring a woman’s bags. Crockett wants her to leave if she wants. Emil and his men try to attack Crockett in the street and Crockett and Bowie beat them up and then they go and have a dr ink. The women told Crockett that there was gun powder in a church and then Crockett and Bowie and some of their men that were sober went to get it and they bring it back to the Alamo they find about 50 rifles and gunpowder. Crockett has Flaca write a letter in Spanish to himself. Travis asks Crockett to ask his men if they will fight and he asks them and they will stay and fight. Crockett has Flaca read the letter in front of everyone and says its from Santa Anna but then after they talk about it he tells them it was from him and that he wrote it. Crockett make Flaca leave to safety. The Mexicans come and tell them to leave but Travis wants to have a war. The Mexicans have a huge cannon so at night Crockett and Bowie sneak out with their men and blow it up by putting mud down the cannon. They are running back and the Mexicans are shooting at them but they all make it back ok. Travis says that they cant do that again. Bowie says he’s going to leave in the morning with his men but Crockett gets him drunk and then he changes his mind and says he’s going to stay and fight in the war.

Was the Alliance System Responsible for the Outbreak of WWI? :: World War I History

Was the Alliance System Responsible for the Outbreak of WWI? The importance of the alliance system that developed in Europe in the decades before World War I as a cause for it is still an important topic of debate and argument between modern historians. Some argue that the alliance system was a direct cause of the outbreak of war between all major countries in Europe while other historians prefer to state that the alliance configuration we observe before the war started was simply a symptom of the conflicts and disagreements, fears and envies that had been accumulating since the Bismarck system of alliances collapsed, and even before then. This last opinion is becoming more accepted as the one that describes the true importance of the actual alliance system as a cause of the war. In order to determine the importance of the alliance system as a cause for the war we must first explore the origins of these alliances. We will take high-point of the Bismarck system in 1878 as our starting point as the Franco-Prussian war is a key factor for the dev elopment of this system. The alliance system ideated by the German chancellor Otto von Bismarck kept peace in Europe but its main aim was, however, to forestall the possibility that, in the event of war, Germany would have to fight it on two fronts (basically France and Russia). This was achieved by diplomatically isolating France so that its dream of recapturing its lost provinces of Alsace-Lorraine couldn't be fulfilled. This was done by, firstly, the creation of the League of the Three Emperors or Dreikaiserbund. It was first projected as a meeting of the monarchs of Germany, Austria-Hungary and Russia in 1872 and confirmed the following year, the 22nd of October 1873. Here, the very general and formless agreement was given a more solid form by military agreements promising to help any country attacked by a fourth party. And all this even though that there was mutual rivalry between Russia and Austria-Hungary in the Balkans. This proved to be a concrete way to isolate France for as E. Eyck mentions, "the League ensured that neither Austria-Hungary nor Russia was available as an ally for France". At this point, Bismarck didn't consider Britain as a potential French ally as they had a long history of rivalry. Secondly, in 1887 the Reinsurance Treaty was signed with Russia in which it promised to support Russia's claims to the strait and to remain neutral in the event of war unless it attacked Austria-Hungary, the same with Russia, who promised to remain neutral unless it attacked France.

Liberal Arts Study

William Cronon states in his article entitled â€Å"only connect†¦Ã¢â‚¬  the goals of liberal education that liberal education is founded on the virtues of aspiration towards the development and growth of human potential for the services of human freedom. This simply means to say that liberal education is a way by which a human being is released and brought to a place where he or she can fulfill their utmost potential.Liberal education and the study of liberal arts, for that matter, is a way of life and not simply a form of education adapted by institutions. It involves passion and girth of knowledge. It accounts for a broad understanding of various kinds of knowledge that is needed for the holistic development of an individual. In today’s society, however, is the study of liberal arts truly needed? What is the importance of studying liberal arts?One of the most important aspects of liberal arts is in the fact that it encompasses the humanities. The study of liberal art s then encourages the study of the humanities. Why is this important? What makes the humanities essential in the progress of humanity, in the continuation of an individual’s daily life?There are many skeptics, especially in this age of unending quests for money and luxury, who believe that the study of the liberal arts, in general, and of the humanities, in particular, is only for those who have time on their hands; only for those who have no plans in contributing to the fast-paced development occurring all over the world today. However, this thinking is wrong and misled in many ways. Before one can understand this, however, one must first be able to understand what the humanities are.According to A.S.P. Woodhouse in his article The Nature of Humanities, humanities is a field of study that reverts the attention or the quest for knowledge on man. It puts the focus of attention on the life of man. Other definitions of humanities state that â€Å"The essence of the humanities i s a spirit or an attitude toward humanity.† (The Humanities in American Life, 3) The humanities, then, is exactly what its name implies, the study of humans, of human life, of human way of life.However, this is very broad. If the scope of the humanities is humanity, this would indicate a near impossibility in studying it in its totality. This is why the development of the study of humanities has involved the sorting of the discipline into different interrelated fields. These include, but are not limited to, literature, art history, music history, cultural history, philosophy, dance, theater, arts, and film. All the disciplines related to humanities and through which it is studied are all centered on human values, beliefs, emotions and also the way these aspects are portrayed through the creativity of humans. (Witt, Brown, Dunbar, Tirro, and Witt, xxvi)It is clear from this description that the humanities are different on many levels from fields of knowledge such as the natural sciences. The sciences include the observation of the world we exist in. It entails creating assumptions, collecting data, and trying to create theories and laws to explain the behavior of the data collected. The humanities, the arts, on the other hand, begin with the very things that are considered irrelevant in science. It starts with the intangible things that are formulated by the creativity and imagination of a human being. The humanities begins with the world man created for himself and only then progresses to the world that is seen with the physical eye.(Frye, 23)Even from this basic explanation of the difference between humanities and science, one can see that there is no point of comparison. Both fields of knowledge are concerned with different aspects of reality. Even with this basic truth, the importance of studying the liberal arts, of studying humanities is seen. As much as there is a need to study science and to explore the world in the way that scientists wish to app roach it, there is also a need to study the liberal arts and humanities and the opposite way by which humanists approach the world. It is, quite possibly, through the intersection of the approaches of both bodies of knowledge that true reality can be understood.However, there is another reason for studying the liberal arts and the humanities. It has been studied by scientists that the human brain is cleft into two. These two hemispheres are in charge of two different aspects of human behavior. The left hemisphere is said to be important for sequences, literalness, and analysis. The right hemisphere, on the other hand, deals with context, emotional expression and synthesis. The left brain has been commonly related to the sciences while the right brain has been related to the humanities.Daniel Pink in his article Revenge of the Right Brain stresses the importance of developing the right brain. He indicates that the world is in overdrive to stick to the sciences, to emphasize the devel opment of the left brain. Computer savvy individuals are held at high esteem. Mathematicians are considered to be of top caliber in the human race. However, he points out that the future is not geared towards a simple understanding of numbers and figures. He emphasizes the need to go right, to develop the capabilities of the right brain. Individuals with the ability to create, to synthesize technology with the development of humanity, and to innovate new ways of thinking are needed.There is, therefore, a need to stretch out further than we have dared to go. The success and the development of mankind is not just in understanding the world he or she lives in but also in being able to interact with it creatively. Being a liberally educated person, says William Cronon in Only Connect, means being able to connect with the world and to interact with it in new and creative ways.This brings one to understand that, indeed, the humanities and the sciences are not separate or battling fields. In fact, the two are interrelated and should be used together for the betterment of society. In fact, without the general knowledge of all, both are indeed already converging in areas such as biomedical research, application of microprocessing and computer technologies, conduct of government, arms control, and utilization of natural resources.These are only a few of the many fields where both humanities and science are needed because of their very nature as fields with social and ethical aspects. (The Humanities in American Life, 6) It is thus clear that as much as society today emphasizes the need to develop the study of the natural sciences, it should also encourage the continuation and the development of the study of the different liberal arts and humanities.Although it is clear that there is a need to interrelate the two bodies of knowledge, the need to study the liberal arts and humanities is not simply based on the fact that it contributes to the developments of science. Scien ce is said to be a study engaged in the constant gathering of information. It involves the steady accumulation of data about the world in which man moves and grows.The liberal arts and humanities on the other hand are unorthodox with regards to the view of education as an addition of knowledge one on top of the other. This is because the liberal arts and humanities are concerned with creation. They involve processes of visualizing the future, of imagining the ideal, of creating in the mind the concept of a society and world to be hoped for. The humanities involve the study and the understanding of the culture and the cultural contexts of mankind. (Witt, Brown, Dunbar, Tirro, and Witt, xxvi) It puts things in perspective because, as the initial definition stated, it focuses on the human life.The humanities, then, involves the aspects of life and reality that are not covered by science. These are just as important, and perhaps at times more important, than the fields science handles. This is evidenced by the fact that both fields of knowledge are interrelated. This is evidence by the fact that both approach the study of life from opposite sides. This is what renders the study of humanities and liberal arts important.A.S.P. Woodhouse in his The Nature of Humanities stated,If the humanities are indeed normative, if they mold the mind and sensibility of the student and bring an accession of wisdom, it is by virtue of their subject matter, of the ideas which they present or evoke and the experiences to which they give him entry; and these ideas and experiences achieve their full effect only as they are examined critically, evaluate, and by the student made his own.This shows that the study of the liberal arts and the humanities is essential not only in the fact that its main subject of study is important. An education in the liberal arts teaches an individual to think outside the box. It teaches him or her to become a critical thinker. The world is no longer simply a place of dates, names, theories, and laws. It becomes a place of endless questions and unlimited answers; answers that can be wrong, right, or somewhere in between. The human being becomes someone with the capacity to reject or accept the validity of everything occurring around him. More importantly, man becomes someone with the capacity to create, change, and redefine the world in which he or she lives. The liberal arts and humanities empowers man and makes him the center of his world. It also humbles man, placing him in a world that continues to provoke thought, emotion, and exploration.Works CitedCommission on the Humanities. The Humanities in American Life: Report of the Commission on Humanities. Berkeley: University of California Press. 1980.Cronon, William. Only connect†¦the goals of liberal education. The American Scholar, 67(1998)Frye, Northrop. The Educated Imaginaion. Bloomington & London: Indiana University Press. 1974Pink, Daniel H. Revenge of the right brain. Wir ed Magazine, 13(2005) Retrieved 29 March 2008 from Witt, Brown, Dunbar, Tirro, and Witt. The Humanities. 7th ed. Jean Woy. Berkeley, Boston: Houghton Mifflin Company. 2005.Woodhouse, A.S.P. The nature of humanities. In Encyclopaedia Britannica. 1989.

The Two Tragic Gods With Dual Personality

The Two Tragic Gods With Dual Personality—Demeter and Dionysus Unlike other immortal gods, who were little use to human beings, and were always marvelous, Demeter and Dionysus, known as gods of harvest, were undoubtedly humankind’s best friends; however, both of them also shouldered a tragic destiny. Unveiled their miraculous appearance, we could see that the two great gods of Earth were not only gods of reaping but also of suffering.Whenever winter came, the low temperature and the frost would wither the crops and grapes, left only shriveled braches. Suffered more than this, Dionysus would die in a terrible way with the coming of the cold: he was torn into pieces, but was always brought back to life; he died and rose again. On the other hand, Demeter would not die, but she also suffered from the painful separateness of her beloved daughter Persephone. It was well-known that both of the two divinities had another personality.Demeter’s anger was a horrible weapon. Mentioned in the book THE CLASSIC BESTSELLER MYTHOLOGY, Demeter could let nothing grow on Earth and turned it into a barren, leafless land. As men always called her the â€Å"Good Goddess†, she also featured a kind appearance. But among all her personalities, the idea of sorrow was foremost. But then, Dionysus, like wine was good as well as bad, also had two personal identities. He was man’s benefactor and was man’s destroyer.His wine was life-giving, and could heal several illnesses, but it was also fatal whenever you drink too much. Bringing all the good and bad things to humankind, Dionysus also was the tragic god as I mentioned above. He was also the embodiment of the life that is stronger than death, for he would rise every time he died. He was the assurance that death does not end all. Holding good and bad, reaping and suffering features, the two great gods of Earth—Demeter and Dionysus were not only mankind’s best friends but also a tragic fate sufferer.